Auto insurance companies offer discounts, reductions and special rates on auto insurance. By taking advantage of these, you can save even more on your auto insurance. The following are some of the discounts, reductions and special rates offered by most insurance companies.
a. Low mileage discounts
Your daily exposure to risk is determined by the distance from your house to work or school. It also determines vehicle use whether it be business or personal use. The average distance you drive annually or how far you commute from or to school or work is the calculation base of your premium. Therefore, you will have a lower premium if you drive in a shorter distance.
b. Good student discounts
Many insurance companies offer “Good Student” discounts for drivers who maintain a “B” (or 3.0) or above “B” average. It is also offered to those family members studying away from home. Auto insurance companies give discounts for currently enrolled students that have good grades.
c. Multi-car discounts
Insure two or more vehicles in one policy to reduce on premiums.
d. Other policies
You can also reduce your premium by availing of other policies with the same company. Other policies may include homeowners insurance policy or life insurance policy. Various insurance companies offer discounts if you have your home insured with the same company that insures your vehicle.
e. The safe vehicle discount
Many insurance companies offer discounts for anti-theft devices installed on your vehicle, like alarms and anti-lock brakes, as well as various safety devices, such as airbags and factory-installed mechanical seatbelts. Installing these devices can earn you discounts.
f. Age - Being at least 25 years old
Auto insurance premiums tend to be lower once a driver turns 25 years old. This may be because the driver’s rates are calculated in a different driver class. Risk assessors have determined that drivers below 25 years old are inexperience driver and immature so is more accident prone. So as the person becomes more responsible the risk of at-fault accident decreases.
g. The good driver discount
Your insurance policy can be cancelled by your insurance company on your renewal if you got involved in an accident and/or you’re given traffic tickets. Discounts are given to drivers who have not had accidents and received tickets for 3-5 years. Discounts are also given to those who have completed a driver’s training course.
h. Avoiding installment fees
Most insurance companies charge service fees for installment payments. So instead of monthly, you can save on premium if you pay 6 months of your auto insurance premium in advance. Buying a 12-month policy can save you even more.
i. Prior insurance
If you have been continuously insured for the last 6 months or more you can also avail of discounts.
j. Good credit score
A good credit score can lower your rate as insurance companies usually adjust rates by judging your risk.
k. Car pooling and use of public transportation
Some insurance companies offer carpooling, as well as public transportation discounts. Logic says that the more you use car pooling and public transportation, the less you drive your vehicle. And the less you drive, the less likely you are to have an accident.
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